How to Use Technology to Buy Stock

In the old days, you had to go to Wall Street to trade stock or hire a broker to do it for you. While traders and brokers aren't going anywhere any time soon, you can enter the market world yourself with little more than your cell phone. Here's how to use technology to buy stock.

Do Your Research

You have more access than ever to information about the stocks you're investing in, and it's more quickly available than ever. The old standard of three days no longer applies as you can trade in seconds. You can easily access a company's current stock prices, earnings report, and other information with the touch of a button. This is especially good if you're investing in something new, such as the best marijuana stocks.

Practice on a Simulator

If you want to learn how to trade without risking money, you can practice buying and selling on a simulator. If you want to practice on a simulator and have a risk-free chance at making money, check out the Vestley app. In this app, your virtual stock portfolio can net you up to $3,000 if you place in the top 100 portfolios.  You can buy and sell up to 10 different stocks, and you compete with tens of thousands of real people to get the best portfolio of the month.

Use Apps to Invest

There are three good apps that allow you to invest with a minimum of fuss: Stash, Acorns, and Robinhood. Stash and Acorns allow you to invest in exchange-traded funds, or ETFs, which are groups of securities bought and sold like a stock. Robinhood is a virtual broker that allows you to buy and sell without a trading fee.

Know What Day Trading Is

Day trading, also known as high-frequency trading, is trading stocks quickly, often within the same quarter if not day. The old advice was "buy and hold," but now people buy and sell to make a profit as quickly as possible. Know that day trading can be susceptible to rumors playing havoc with a stock price. For example, in 2010, Qantas stock fell after a false rumor about a plane crash circulated on Twitter. Some people also use a "pump and dump" strategy, where they start false positive rumors to drive up the price of a stock before they sell it.

Seek Expert Advice

There are several websites available that give excellent advice on what stocks are popular and why, which stocks have excellent growth potential, and other information. While ultimately what you invest in is up to you, it can be extremely useful to have an outside opinion. Look at any expert's track record before you decide whether or not to listen. For example, if your guru called the housing bubble and the dotcom bust, you might want to pay attention to what he/she says about cannabis stocks.

It's All Up to You

Technology is constantly progressing, so today's advice might become quaint by tomorrow's standards. What those standards will be, though, is impossible to predict. So focus on the now and what you know. Ultimately how to use technology to buy stock is up to you. Use it wisely to help you make the best decisions.